In the face of ongoing muni weakness and the approaching federal income tax deadline, municipal bond mutual funds that report their flows weekly saw losses rise significantly as $1.14 billion left the $462.10 billion industry in the week ended April 6, according to Lipper FMI.
Tax-exempt yields backed up slightly Friday as the muni market followed weakness in Treasuries and the 10-year muni yield hit 3.25%, its highest level since Feb. 15.
The swell in outflows reversed a three-week consecutive trend of declining flows that ended with a year-to-date low of $403.60 million in the week ended March 30.
It also marked the largest outflows activity since $1.03 billion exited in the week ended March 2.
Overall, the four-week moving average for all muni funds increased to $765.42 million, compared to $605.20 million in the week ended March 30.
In addition, the value of assets for all muni funds declined by just $257.54 million, compared to a decrease of $1.90 billion in the previous week at the height of the market weakness.
